Fidelity Sector Investor

May 2019

Earlier this year, I began to inform you about an ironic shift in my view of investing in China. The irony was not that my view changed from absolute avoidance to potential pursuit. The irony was that the more I thought about how China was reverting to the more extreme ways of its communist past, the more I began to think about market opportunities that could emerge in what is still, inarguably, a problematically unfree place. In this month's Fidelity Investor issue, I will discuss in much more detail why I’m changing my stance on investing in China and the... Read more

May 16, 2019

Thanks in no small part to some tornadic tweets, in little more than one week's time, we have shifted from a high probability of an optical trade deal between the U.S. and China to a higher probability for a protracted back-and-forth between the two superpowers and their respective super-economies. So, once again, we need to ask, "Where do the market risks lie at this point amid U.S.-China negotiations?"... Read more

Model PortfolioFidelity Investor’s Model Portfolios have year-to-date returns through 4/30/19 of between 5.5% and 15.6%. The average investor at Fidelity gained 2.4% in April.

Correlation Tool

You don't want to own too many funds that are similar, but how do you tell? A high correlation between funds may mean that your portfolio of funds is not as diverse as you might want it to be. While other tools may compare funds only to the S&P 500 (or 500 Index fund), you can use this tool to determine how closely the performance of one Vanguard stock fund tracks that of any other Fidelity stock fund. Compare all the funds that you own. To diversify, look for funds that have low correlation with one another.

You don't want to own too many funds that are similar, but how do you tell?

A high correlation between funds may mean that your portfolio of funds is not as diverse as you might want it to be. While other tools may compare funds only to the S&P 500, you can use this tool to determine how closely the performance of one Fidelity fund tracks that of any other Fidelity fund. Compare all the funds that you own. To diversify, look for funds that have low correlation with one another.

Jim Lowell is Editor-in-Chief of the award-winning independent newsletters Fidelity Investor and Fidelity Sector Investor. Through his newsletters, Jim advises individual investors seeking superior performance from their Fidelity investments. He has also written several books on investing, Investing from Scratch (revised edition, Penguin, 2006) and What Every Fidelity Investor Needs to Know (Wiley, 2007) among them. Read more

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Jim Lowell adheres to the Cardinal Rule of Mutual
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